AM Best Maintains Under Review With Negative Implications Status for Universal North America Insurance Company

AM Best has maintained the under review with negative implications status for the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb” (Fair) of Universal North America Insurance Company (UNAIC) (Arlington, TX).

The Credit Ratings (ratings) reflect UNAIC’s balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and marginal enterprise risk management.

The ratings have been under review with negative implications since October 2023, initially due to a significant decline in policyholder surplus as the result of weather events in that year. Additionally, UNAIC’s ratings were downgraded to the current rating levels, with the under review with negative implications status maintained, on Feb. 12, 2025 (see related press release), following the executed stock purchase agreement, effective Jan. 31, 2025, which included the sale of UNAIC’s holding company, Universal Insurance Holdings of North America, and an affiliated managing general agent.

Management has requested additional time to further develop its business plan and capital management strategy. The ratings will remain under review with negative implications until AM Best can fully assess UNAIC’s business plan and prospective capital management strategy under its new ownership structure. The negative implications point to financial-strength uncertainty at the new intermediate holding company, 5B Alliance, LLC, and the ultimate parent, which is an individual entity.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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